Mortgages for Vacation Homes with less than 20% downpayment

HomeOpeners®: Vacation Homes Program

Owning a weekend retreat by the lake is the dream of many. Today I’d like to tell you how one family traded in their hectic weekends in the city for the tranquility of cottage life on the lake.

Genworth Canada’s Vacation Homes Program allows qualifying homebuyers to purchase a vacation property with as little as a 5% down payment.

Video Transcription

Hello, my name is Andrew Schwalm and I am an account manager at Genworth Canada.

Owning a weekend retreat by the lake is the dream of many. Today I’d like to tell you how one family traded in their hectic weekends in the city for the tranquility of cottage life on the lake.

Jane and Don Powell and their two children lead busy lives. Don, an outdoorsman, likes to spend weekends fishing and hiking. And, since the kids are avid swimmers, Jane is forever driving them to and from the local pool. They currently live in the suburbs and want to buy a cottage not far from home to spend their weekends. Since Don’s parents rented a cottage every summer, he wanted to create the same type of memories for his children.

The couple currently owns a home with 12 years left on their mortgage. While they work full-time in secure jobs, they aren’t certain if or how they can afford to buy a cottage. They’d found the perfect one, too,…only a 45-minute drive from home. But how could they qualify for a second mortgage?

The Powells met with their mortgage professional, who told them about Genworth Canada’s Vacation Home program. This program makes it possible for qualifying homebuyers to purchase a vacation property with as little as a 5 per cent down payment. He explained the two different options under the program…one for year-round winterized cottages, which is what they were looking to purchase; and, another option for seasonal properties.

A conventional mortgage in Canada normally requires a down payment of at least 20% of the purchase price. When homebuyers have less than 20% for a down payment, Mortgage Insurance allows them to secure a mortgage for their home purchase.

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